Wednesday 9th July 2008

Fiat/ BMW Alliance

The two carmakers will work together on small cars

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Fiat and BMW have signed an agreement to build cars and share components, it has been reported. The two companies will share components, engines and know-how, especially when it comes to small cars. Interestingly the new small Alfa MiTo is being seen as a Mini rival but BMW and the Italian firm may well be sharing parts on their small cars in the future.

BMW executive board member Friedrich Eichiner said in a statement: 'We are currently examining with the Fiat Group possibilities for the joint use of components and systems in Mini and Alfa Romeo vehicles in order to achieve economies of scale and thus cost reductions.'

The move will help both companies reduce costs and the alliance should be finalised by the end of the year.

Fiat CEO Sergio Marchionne added: 'The proposed cooperation with BMW is a significant cornerstone of our strategy of alliances. We are delighted to work with such an esteemed and respected partner in the automotive industry with the clear objective of improving the competitive position of both parties.'

[Baffled Spoon]

Very interesting, might we now see small beautiful and reliable Alfas? Hopefully BMW might also like to share the 1 series plaform. A small rwd Alfa - quite an enticing prospect imo.

[pSyCoSiS]

Atleast those Italian motors will start being better-built machines, more reliable, etc !!!

[Gylen]

Unless it goes like the Alfa/Nissan Arna project...;)

Could imagine BMW styling with Italian electrics...

[wab172uk]

To cut costs

Will this result in lower sticker prices? Errr, no.

[Epiphany]

Seems an odd decision on BMW's part to me

[Tahiti]

Positive - Fiat style (and price) with German reliability
Negative - BMW price with Italian reliability

[ewenm]

wab172uk said:

To cut costs

Will this result in lower sticker prices? Errr, no.

Annoying but irrelevant. They'll be priced as high as possible while still selling the target volumes. They are businesses not charities and people will pay a premium for either badge.

[smart51]

the Fiat 500 is also the next Ford Ka, The new punto is also a Vauxhall Corsa. Are Fiat going to replace their entire range with other people's platform shares?

[bobthemonkey]

smart51 said:

the Fiat 500 is also the next Ford Ka, The new punto is also a Vauxhall Corsa. Are Fiat going to replace their entire range with other people's platform shares?

Ford are buying the 500 platform; it's an original Fiat design used for the Panda. Actually, the purchase price basically paid for the entire 500 development program according to reports.

[ffelan]

seems an odd one given bmw jointly developed the cooper/cooper S engines with PSA and doesnt it also buy in the psa diesel for the cooper D? or is this for a sub mini city car model?

[BigMansZetec]

Is that the end of BMW's deal with Peugeot over engines then?

[AngryS3Owner]

Epiphany said:

Seems an odd decision on BMW's part to me

just what I thought!

[Alex]

Thought: Why didn't BMW just persevere with Rover?

[ewenm]

Alex said:

Thought: Why didn't BMW just persevere with Rover?

Hmmm...
Alfa - sexy, Italian, exciting, unreliable.
Rover - flat cap and shapes of beige, unreliable.

Good question, why didn't they persevere there?

Edited by ewenm on Wednesday 9th July 13:37

[Accelebrate]

I suspect one of the reasons fiat is still with us is thanks to selling their engines and chassis to other manufacturers, they've had some big flops in recent years (Stilo, anyone?). I don't see that many puntos on the roads now, despite the 5 year warranty and 0% deals but I see a lot of new corsas, and isn't the clio now based on the same platform? Most diesel corsa vans are fiat powered iirc as well.

[B10]

They did and called it Mini. Do not forget the positve aspects of MG. Also Skoda's image was pants and VW turned that around. Peddling half truths at best about Rover I am sure quickened their demise.

[niva441]

ewenm said:

Alex said:

Thought: Why didn't BMW just persevere with Rover?

Hmmm...
Alfa - sexy, Italian, exciting, unreliable.
Rover - flat cap and shapes of beige, unreliable.

Good question, why didn't they persevere there?

Edited by ewenm on Wednesday 9th July 13:37

Perhaps they think they can kill off FIAT, like they did Rover.

[Road_Terrorist]

Lets hope BMW are helping them with making a decent RWD car in return

[f111lover]

This is great, BMW price and style built to Italian standards.

[OperationAlfa]

I'm nervous about this.